After winning legislative backing for the Hong Kong Jockey Club to offer basketball betting – an initiative aimed at drawing punters away from illegal online bookmakers and capturing additional tax revenue – the government has now paused the roll-out.

Officials say the rise of prediction markets has altered the landscape and warrants closer examination. So, what is it about prediction markets that unsettles officials?

Prediction markets are online platforms where the menu stretches far beyond sport. Contracts are posted on matters such as conflicts, interest rate decisions and other events – weighty issues recast as wagers, often without the consumer protection normally associated with licensed betting.